Omantribune
Oman Tribune
Omantribune
Omantribune Search News
Web Oman
    Google Search Button
      Tribune
- Oman
- Soccer World Cup
- Other Top Stories
- Middle East
- Business
- Sports
- India
- Pakistan
- Asia
- Europe
- Americas
- Columnists
- Editorial
- Oman Mirror
- Special Features
- Cinema
- PDF Pages
- Weather
- Travel
- Currency Rate
- Hospitals
- Pharmacies
- Services
- Flight Timings
- Museum Timings
Omantribune Home Omantribune About Us Omantribune Advertising Information Omantribune Archives Omantribune Subscribe-Form Omantribune Jobs Omantribune Contact Us
Thursday, September 18, 2014  

Tata Motors Q2 net rises 10.5%
MUMBAI Tata Motors, the country’s largest carmaker by revenue, posted a 10.5 per cent gain in quarterly net profit, but lagged estimates as pricing pressure impacted its Indian business margins and slowing economic growth impacted demand for commercial vehicles.

The car maker said net profit rose to Rs20.75 billion in July-September from Rs18.77 billion a year ago, while revenue increased 20 per cent to Rs434.03 billion on rising demand at its key Jaguar Land Rover subsidiary. The operating margin for its India business fell to 5.9 per cent for the quarter down from 7.2 per cent in the year ago period.

Tata Motors’ Chief Financial Officer C Ramakrishnan said that the company expected to improve its India profit margins, as it continues to focus on cutting operational costs, but the demand outlook was clouded by the slowing economic growth.

“We continue to see sluggish economic activity,” he said. “We continue to see demand pressure in the market.”

Tata Motors, which depends on JLR for 90 per cent of the group’s profit, said the iconic British brand’s operating margin stood at 14.8 per cent in July-September, down from 14.9 per cent a year earlier.

Revenue at the luxury British brand rose 12.8 per cent to 3.29 billion pounds in the period, less than the 34.4 per cent gain seen in the previous quarter.

Tata has grown dependent on JLR, which it bought for $2.3 billion in 2008, as domestic sales of its own models struggle.

JLR’s recent success has also driven Tata’s stock price 50 per cent higher over the past 12 months.

Profit from the company’s Tata-branded Indian business, which had fallen for four straight quarters, rose nearly eight-fold to Rs8.67 billion. That was mainly because the company took an exceptional charge in the year-earlier quarter.

Domestic sales of Tata’s own brand of cars and trucks have sagged due to India’s cooling economy.

Tata also faces strong competition in India from global carmakers such as Ford Motor Co and Volkswagen and truck manufacturers such as Daimler as they scale up operations in the company’s backyard.

Shares in Tata Motors ended 0.9 per cent higher ahead of earnings announcement at 269.35 rupees, while the main Mumbai market index closed 0.5 per cent higher.

Reuters
NEWS UPDATES
Oman
Sezad-Pasmed MoU to boost SME ventures
Sharakah inks deal with 4 firms to help 30 SMEs, 300 entrepreneurs
SQU takes part in Prague EAIE Conference
Omani-Brunei committee discusses investments
New ROP offices in South Batinah
Health ministry holds meeting on Ebola
Two-day forum on management systems begins
Rohm musical treat to offer families a feel of opera fun
Ministry holds meeting on Omanet portal
Other Top Stories
Iran’s uranium enrichment not acceptable: US
Obama calls global action to fight Ebola
20 die as Houthis, army clash
Scots could narrowly reject independence
Ukraine PM tells army to be on full battle alert
India
AG asked to look into selection method of CVC
Modi, Xi bond on Sabarmati riverfront, main talks today
Modi bats for schemes to make poor self-reliant
Country on brink of urban revolution, says UN-backed report
Kerala hikes water tariff, tobacco tax
Praise of Modi government based on facts, says Pranab
Minority status likely for Kashmiri Hindus
BJP chief undeterred over reverses in byelections
Sena refuses to accept BJP’s seat demand
Asom ex-DGP tainted in Saradha chit scam ends life
90pc of Kerala diaspora are in Middle East, says study
Pakistan
Sharif threatens to clear protesters camped in capital
Flood victims loot aid after CM delays visit
Karachi naval base raid was ‘first assault’ by new S. Asia wing of Al Qaeda
Anti-graft agency seeks Karachi land scam probe
400-year-old tombs in Sindh to get facelift
Middle East
Militia launches new assault on Benghazi airport, 9 killed
Turkey stance may hurt US coalition plan
Egypt to buy Russian arms in deal worth $3.5b
Russia, West lock horns over Syria at IAEA meet
2 get death in S. Arabia over Al Qaeda links
Ailing Iraqi refugees struggle without life-saving drugs
Asia
Court commutes death sentence of Bangla preacher
China to try prominent Uighur scholar on separatism charges
Thousands forced to flee as Mayon set to erupt
China mum on status of diplomat in Japan spying row
Woman ‘who lost’ virginity gets $5,000 in damages
‘Modern slavery’ rampant in Malaysia
Business
Gulf banks well placed to meet Basel III norms
19.69m rials allotted to Sohar Industrial Estate
Larger-screen iPhones receive thumbs-up from reviewers
Global billionaire club grows 7% to 2,325
Cairn discovers 3 new oilfields in Rajasthan
Xi sees China manufacturing base, India back office as growth engine
IndiGo to borrow $2.6b from ICBC to buy aircraft
EPFO chief seeks nod to invest in stocks to raise returns
Emirates to boost India business organically
Etihad shuns global airline alliances
China pumps $81.35b into top five banks
Sony sees $2.14b loss, blames mobile unit
Economic uncertainties ‘affect Asia business sentiment in Q3’
France is sick, says economy minister
UK watchdog overhauls firms’ governance code
Credit Suisse under Fed scrutiny
Europe
Clock ticks on Scottish vote
France to limit Iraq, Syria trips over terror fears
Cardinals derail pope bid to ease church’s tough stance on remarriage
9 imams among 15 held on terror links in Kosovo
Frenchwoman pays taxes with 30kg of small change
Another Russian tycoon in fix over financial fraud
Sports
Benn, Taylor sew it up for Windies
Oman let Singapore off hook to end in 3-3 draw
Let the best stay but get rid of mediocre foreigners: FA chief
Mixed luck for Liverpool and Arsenal
World’s top coaches no to idea of 2018 WC boycott
Al Hilal rout Al Ain as Wanderers hold Seoul
Incheon set for spectacular opening
Iranian kicked out over sexual harassment
Thai princess eyes gold with Prince Charming
Hosts out to end Thailand’s reign in sepaktakraw
Indonesia poised to be selected ’18 Games host
Russell, Doeschate seal Kolkata win
Americas
American indicted for backing IS, attempting to murder troops
Odile leaves trail of destruction in Mexican resorts
Argentina summons US envoy over ‘default’ slur
Rousseff, Silva in neck-and-neck fight, show polls
Firefighters battle to contain California blaze
Texans take ideas from Scottish poll

Sports


International

© 2013 Oman Tribune. All rights reserved. Best viewed in 800 X 600 resolution